DirecTV reported a 14 percent decline in net income to $319 million (27 cents per share), slightly missing Wall Street's expectations of 29 cents per share, according to Thomson Financial. Profit was hurt by increased capital spending on high-definition offerings as well as increased demand for digital video recorders, the company said.
Revenue for the El Segundo satellite TV provider surged 18 percent to $4.33 billion, eclipsing analysts' predictions of $4.2 billion. The company said the addition of 240,000 new subscribers during the quarter, a 45-percent jump year-over-year, as well as strong demand for high-definition and digital video recorder services helped boost sales.
Average monthly churn rate, a measurement of the pace of customer defection, fell to 1.6 percent from 1.8 percent for the same period last year.
As of the end of the quarter, DirecTV said its U.S. subscription base is up 6 percent to a total of nearly 17 million.
Shares in DirecTV gained 1.3 percent to $27.12 in early trading Thursday on the New York Stock Exchange. Shares are up 14 percent since the beginning of the year.
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